When you are underwriting a small multifamily deal, for example, 4 to 10 units or more, in a tertiary market with C & B-class properties, what is the best way to determine a safe cap rate for your subject property?

Hi Friends,I am looking to flip in the Tampa area and I'm in touch with a few Wholesalers and Realtors there.I have received multiple properties from them; however, I am always concerned that their ARVs are inflated, which will leave me in the red.How do you determine correct ARVs when you are not physically present and can't pull your own comps from the MLS?

I would have to pay for some legal expenses for deed work, etc and relator fee so,I would net around $55k .trying to determine what makes most long term financial sense. 

Some sellers refuse to understand that when inventory is up in a market, prices decrease. Overpaying for a home does not guarantee you'll get more for it later. Lol rules are rules!

Is there a formula to use to determine the optimal purchase price?

The OP even states open floorplan "photograph well" and photographs are a major determining factor when a guest books a place to stay.That said, all of the STR's I own are BRRR and were older fixer uppers with odd layouts which made them less desirable making for a better deal for me :)

I did see a thread back in November about house hacking and assisted living, but that approach didn’t seem quite as promising because it required more hands-on work, along with entity structuring and considerations like caregiver wages, food, supplies, licensing, insurance, overhead, etc.I liked Alex’s answer about looking into cost segregation studies.

I am curious as to why there is such a large disparity in how a true cap rate is determined?

How does one determine my size of the equity stake?  

Most DSCR lenders will use the sales comparison approach to determine the value of the home.